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In calculating the profits of a trade which consists of, or includes, the exploitation of the original master versions of sound recordings¹, a deduction is allowed² for the amount of production or acquisition expenditure allocated to the relevant period provided certain conditions are met. The relevant period is a period of account of the trade or, post 2024/25, the tax year where no accounts have been made up for a period of account ending in that year. Prior to 2024/25 and the basis period reforms this is the basis period for the tax year where no accounts have been made up for a period of account ending in that year ³. The original master versions must not constitute trading stock of the trade⁴, and the expenditure must be incurred in or before the relevant period⁵.

A just and reasonable amount of the expenditure must be allocated to the relevant period⁶, taking into account the following⁷:

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   •ÌýÌýÌýÌý the amount of expenditure remaining unallocated at the